During the years ended June 30,2017 and 2018,Jackson University,a private university,conducted a cancer research project financed by a $1,000,000 gift from an alumnus.The entire amount was pledged by the donor on July 10,2016.The gift was restricted to the financing of this particular research project.During the two-year research period,Jackson's gift receipts from the alumnus and research expenses related to the research project were as follows for each fiscal year (FY): FY 2017 FY 2018
Gift receipts $200,000 $800,000
Cancer research expenses $100,000 $900,000
What amount of net assets was released from restriction in 2017?

Question

Quizplus · Accepted Answer

The gift was restricted to financing of the cancer research project. In the first year (FY 2017), the total gift receipt was $200,000 and total research expenses were $100,000. Therefore, $100,000 was spent from the gift and $100,000 remains restricted. In the second year (FY 2018), the remaining restricted amount ($100,000) added to the gift receipt of $800,000 makes the total restricted funds $900,000. The total research expenses in FY 2018 were $900,000, meaning that the entire amount was spent, and nothing remains restricted. Therefore, none of the net assets were released from restriction in FY 2018. In FY 2017, only $100,000 was spent, so the answer is B, $100,000.

During the Years Ended June 30,2017 and 2018,Jackson University,a Private